IKEA SWOT Analysis


A SWOT (strengths, weaknesses, opportunities, threats) analysis allows a company to evaluate its operations from an internal and external point of view. The company examines strengths and weaknesses internally. A strength may be an excellent order management process, while a weakness may be poor communication among departments. Opportunities and threats are external. An opportunity could be the ability to partner with a nonprofit organization, and a threat could be government regulation of the use of raw materials. IKEA is a home furnishings manufacturer that has conducted a SWOT analysis of its business operations.


  • IKEA has maintained long-term partnerships with its suppliers. This ensures that the company has access to high-quality materials at reasonable prices.


  • IKEA is a global company, so product standards may be difficult to maintain.


  • IKEA can further capitalize on the "green" movement and IKEA's customers' desire to have less of an impact on the environment.


  • The regulatory environments across the globe vary and can affect how IKEA does business and its product costs, especially the use of natural resources.


  • A SWOT is a simple analysis tool to construct. It is a four-square box with strengths and weaknesses at the top and opportunities and threats at the bottom.

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